Noncash investing and financing activities, such as the issuance of bonds to acquire business property, do not require disclosure as the cash account is not affected.

Question

Quizplus · Accepted Answer

While noncash investing and financing activities do not affect the cash account directly, they still need to be disclosed in the financial statements as they can have significant impacts on the company's operations and financial position.

Noncash Investing and Financing Activities, Such as the Issuance of Bonds